Hyderabad already has the necessary infrastructure for the next few years: Pankaj Toppo, Knight Frank


The drastic dip in the number of newly launched units is a result of lack of proper implementation of RERA rather than any fundamental flaw in the real estate market of the city.

Anup Toppo, Vice President - Research, Knight Frank India
Pankaj Toppo

The number of newly launched units, in Hyderabad, in the second half of 2017, certainly does not look promising, but the fact remains that it is just a passing phase. Ever since the city of the erstwhile Nizams left the birth pangs of the new state behind it, the real estate market in the capital city—Hyderabad—has been on an upward growth curve. The drastic dip in the number of newly launched units is a result of lack of proper implementation of RERA rather than any fundamental flaw in the real estate market of the city. Broadly speaking, the present day does not look good but the future certainly is promising for the real estate sector of Hyderabad. What works to the advantage of Hyderabad is that the corporates find it as an attractive city, and for professionals, the city scores high on providing a quality lifestyle; the biryani is an additional bonus.


While other cities are battling with issues like traffic jams, water woes and the inability of the urban transport systems to keep pace with the increasing population of the city, Hyderabad is at a very different level. It will not be wrong to say that compared to other cities, Hyderabad already has the necessary infrastructure at least for the next few years. The vast network of well-maintained roads makes movement within the city a breeze. As an illustration, even during peak office hours one can reach from Hitech City to Kondapur, a distance of around 5 kilometres, in about 15 minutes. The urban infrastructure so laid down, is also being augmented from time to time. A prime example of this has been the metro that made its debut in the city, in November 2017. The metro is now functional only in a section of the city. but in the future it will spread across the city. What this will do is increase smooth faster movement across the city and also ease the pressure on the existing road network. While robust infrastructure will make the city more livable, it will also add to the real estate of the city. Generally, it has been seen that real estate benefits in the areas falling in the impact zone of an infrastructure project and the Hyderabad real estate market is no different. For example, most of the development in the present day is happening in areas like Narsingi and Kokapet along the Outer Ring Road.


Since the new government has been in power, the good work that it has done, especially in promoting Hyderabad as an attractive investment destination, is commendable. For starters, the state as a whole and Hyderabad in particular has been marketed well to the right audiences. Apart from ensuring that the city has a robust infrastructure among other things, the state government has also ensured that the city gets uninterrupted power supply, something a rarity in most urban centres in India. “The manner in which the state government is working, the city’s water woes too will soon be taken care of,” said one of the developers. It cannot be denied that the marketing efforts of the state government to the right audience at the right fora are slowly transforming Hyderabad into a preferred destination for corporates as well as developers from other cities, especially from Bengaluru.


This trend started a few years ago but is expected to gain strength in the future. It has been seen that developers who have been facing issues in getting land, and that too at competitive rates in Bengaluru, have started to focus their energies towards Hyderabad. Land rates in Hyderabad are cheaper compared to Bengaluru and the erstwhile city of the Nizams has of late seen an increased interest from corporates. This is evident from the strong performance of the office market in the city which is expected to further gain strength in the future. The fact that Hyderabad has the necessary talent and is able to attract new talent to meet the requirements of corporates only adds to the attractiveness of the city.


Apart from the excellent quality of life that the city offers, by nature Hyderabad has been a very welcoming city. This is something that is not being talked about much but the fact remains that for people not conversant with the local language, living in Hyderabad is a comfortable proposition. For anyone coming to live in the city “there are no language barriers.” There is no visible linguistic patriotism being pushed within the city. This by far is one of the major catalysts that is instrumental in pulling people, especially from North India, to the city. What makes the deal sweeter is that even in upcoming locations, near the IT corridor in West Hyderabad, capital values of housing units are still between Rs4,000–5,000 sq ft.

The only factor that mars the real estate sector in Hyderabad is the drastic dip in new launches. That however, is just a passing phase. The fundamentals of the market are right. Once systems and processes to implement RERA are put in place and are functional, it will not take much time for the real estate market in Hyderabad to overcome the minor niggle that it is presently facing, it is just a passing phase.

[Pankaj Toppo is Vice President – Research at Knight Frank India]

Latika Bhargava
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